A latest report by Hometrack suggests that Manchester leads the way in house price growth in a table covering the UK’s 20 biggest cities.
We have known for a while now that Manchester is thriving thanks to modernisation of the city, enhanced infrastructure, large regeneration projects, increased tourism, arts, culture, sporting success, major business relocation, and the northern powerhouse regime that (although stuttering) has proved there is an alternative to London when it comes to investing (at much lower rates than the capital).
And as London lies tenth against UK major cities in Hometrack’s annual house price growth table we see the inevitable slowdown in Britain’s biggest city buoyed by investors looking elsewhere to buy within the UK.
Take Brexit, which may or may not have effected foreign buying interest, it has certainly meant that the British Citizen has kept his/her pound on these shores and because of falling exchange rates investing in Britain, not overseas, in towns where you get more for your money is a safer more sensible option whilst the currency outlook is uncertain.
House prices in Manchester grew 8.8% within the last year, more than in any other major city but both Portsmouth & Bristol also achieved growth of over 8% in property value over the last 12 months. In fact 19 of the 20 biggest cities in the UK saw house price growth with 14 of those showing above 5% rises and only Aberdeen dropping in to minus figures with house prices falls at -5.9% due largely to uncertainty in the oil industry locally.
The table of twenty looks as follows:
1. Manchester, £151,800, 8.8%
2. Portsmouth, £225,600, 8.1%
3. Bristol, £261,900, 8%
4. Glasgow, £117,900, 7.7%
5. Birmingham, £148,300, 7.4%
6. Leicester, £162,400, 7.2%
7. Liverpool, £115,600, 6.8%
8. Bournemouth, £275,500, 6.2%
9. Southampton, £220,600, 6%
=10. London, £488,700, 5.6%
=10. Sheffield, £130,800, 5.6%
=10. Nottingham, £140,700, 5.6%
13. Edinburgh, £203,900, 5.5%
=14. Leeds, £154,800, 5%
=14. Cardiff, £193,700, 5%
16. Belfast, £127,700, 3.8%
17. Newcastle, £123,800, 3.7%
18. Oxford, £409,700, 3.4%
19. Cambridge, £418,400, 2.2%
20. Aberdeen £181,600, -5.9%
Hometracks report said “While growth in Manchester has hit close to 9%, the supply/demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.”
Insight director at Hometrack, Richard Donnell, said: “Buyers are fully aware of the Government’s plans and timescales for Brexit but there remains huge uncertainty over what this means for the economy over the next two to three years and beyond.
“In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes.
“Overall we continue to expect the rate of house price growth to moderate over the rest of 2017.”
Hometrack’s figures are released before official market data from the Office for National Statistics which has highlighted a UK growth slowdown since the beginning of the year.
The research put the cost of an average home in London just below £490,000 – compared to £152,000 in Manchester.
The cheapest city to buy a property, in average price terms, was Liverpool at almost £116,000 followed by Glasgow at £118,000. Price growth in those cities stood at 6.8% and 7.7% respectively.